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Scansource Inc (SCSC) — WACC Analysis

WACC Breakdown

Scansource Inc (SCSC) has a weighted average cost of capital (WACC) of 9.1%. The cost of equity is 9.4%, derived from a beta of 0.98 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.1%. The capital structure is 92.3% equity and 7.7% debt.

Interpretation

A WACC of 9.1% is moderate, reflecting the market's balanced risk assessment of Scansource Inc.

Investors can compare SCSC's WACC of 9.1% against industry peers to gauge its relative financing costs. A beta of 0.98 reflects the stock's volatility relative to the broader market.

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VALUATION

SCSC WACC: 9.07% for Scansource Inc

Current inputs imply a 9.39% cost of equity and a 6.50% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Scansource Inc Common Stock (SCSC) WACC Results
Weighted Average Cost of Capital
9.07%
Cost of Equity
9.39%
Risk-Free Rate5.22%
Beta0.98
Market Risk Premium4.23%
Cost of Debt
5.14%
Pre-Tax Cost of Debt6.50%
Tax Rate21.00%
Tax Shield1.37%
Capital Structure
Equity: 92.34%($1222.06M)
Debt: 7.66%($101.41M)
Equity Component
8.67%
92.34% × 9.39%
Debt Component
0.39%
7.66% × 5.14%

Scansource Inc (SCSC) WACC in context

Scansource Inc (SCSC) currently screens with an estimated WACC of 9.07%. That blends a 9.39% cost of equity, a 6.50% pre-tax cost of debt, and a 92.34% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What SCSC WACC implies

A 9.07% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SCSC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.98 and equity accounts for 92.34% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.